Japan invests $4.8 billion in TSMC plant, emphasizing importance of cutting-edge chips for future industries
Japan has announced plans to provide an additional ¥732 billion in subsidies for Taiwan Semiconductor Manufacturing Co. (TSMC) to expand its plant in the country. Economy Minister Ken Saito has labeled TSMC as the most crucial partner for Japan in its digital transformation efforts.
The funds will go towards the construction of a new fabrication building, TSMC’s first in Japan, as part of the project known as TSMC Fab-23 Phase 2. This facility is set to produce chips as narrow as 6 nanometers and begin mass production by 2027. TSMC’s Kumamoto factory, which is already receiving ¥476 billion in government support, is expected to start shipping logic chips for CMOS camera sensors and automobiles by the end of this year.
Japan’s investment in chip companies like TSMC, Samsung Electronics Co., and Micron Technology Inc. is aimed at securing a stable supply of chips for various industries. Minister Saito has stressed the importance of government investment in fostering the development of industries and ensuring economic security.
The move comes as governments worldwide are scrambling to secure a domestic chip supply, with Japan’s implementation speed earning praise in this fiercely competitive landscape. The latest subsidy for TSMC signals Japan’s commitment to strengthening its semiconductor industry and staying ahead in the global race for technological advancement.
